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HPCL Petrol Pump Dealership

HPCL Petrol Pump Dealership

Petrol pump business is a lucrative business with good returns is a general perception among the significant proportion of total population in our country. However, petrol pump profitability has been transformed dramatically over the past decades. The growing number of vehicles across our country has led to an increase in fuel demands and ultimately increases the need for petrol pumps. According to the reports, an average petrol pump sells almost five lakh litres of fuel, petrol and diesel every month in India. Hindustan Petroleum Corporation Limited (HPCL) is a Government of India controlled Navratna oil and gas company headquartered in Mumbai, Maharashtra. The corporation operates 14,675 Petrol Pumps all over India. This article provides the procedure for opening an HPCL Petrol Pump dealership in detail.

Locations for HPCL Retail Outlet

HPCL decides the location for setting up the dealership after studying the feasibility. After that, HPCL releases advertisement for the locations identified. Accordingly, regular and rural HPCL retail outlets will also be set up by the company.

HPCL Retail Outlet Sites

The HPCL Company will decide the type of sites for HPCL retail outlets. The status of land and facilities will categorise the site.

S.No

Type of Site

Status of Land & Facilities

1

CFS Sites (Locations under Corpus Fund Scheme)

The offered land for outlet will be taken on purchased or lease-purchase and fully developed as the corporation owned site.

2

2 “A”/ “CC” sites (Other Corporation Owned Sites)

The offered land will be taken on purchased or lease and fully developed as the corporation owned site

3

Company Leased Site

The offered land along with superstructure need to be developed by the dealer, and it will be taken on lease by HPCL.

4

“B”, “DC” sites (Dealer Owned sites)

The offered land and the superstructure will need to be developed by the dealer. Petrol & Diesel pump, tank, automation, signage, etc. will be provided by the HPCL.

Note: Offered lands can either be taken from the applicant or the owner of the land directly

Eligibility Criteria for Opening HPCL Retail Outlet

Eligibility Criteria for individual applicants for Partnership or Proprietorship of HPCL retail outlet is described below.

A resident of India (as per Income tax rules) can own an HPCL Petrol Pump

Age of the applicant should more than 21 years and not more than 55 years except for freedom fighters under the CC2 category.

For operating a rural HPCL ROs, the applicant should have the minimum qualification of 10th standard

For establishing regular HPCL ROs, the applicant should have the minimum qualification of HSC level of examination conducted by a board or university

Eligibility Criteria – Finance

For regular HPCL ROs, the fund requirements for eligibility will be Rs. 25 lakhs and in respect of Rural HPCL ROs the fund requirement for eligibility will be Rs. 12 lakhs. The funds can be in the following forms:

Funds in savings accounts, deposits with a bank

Companies or Postal Schemes

Company shares

National Savings Schemes

Mutual Funds

Note: Only 60% of the certified value (for shares, mutual funds & bonds) will be considered for eligibility.

Eligibility Criteria for Entity (Non-Individual Applicants)

Non-individual applicant or entity refers to Government bodies or agencies, societies registered under Societies Registration Act or societies registered under co-operative societies Act, or co-operative societies act as enacted by concerned states, charitable trusts registered with the charity commissioner, companies formed under the Companies Act (except Pvt. Ltd. companies).

Residential status: The entity should be registered in India

Age: The date of Registration or incorporation of the firm or entity should be at least three years

Land: Concerning land, all conditions covered for individuals would apply excepting clauses are given for land owned by the family unit.

Finance: All conditions covered for individuals will be applied excepting finance offered by the family unit.

Investment Details – HPCL Retail Outlet

The capital investment required for setting up of an HPCL petrol pump outlet varies from location to location depending on the cost of land, size of plot and facilities needed to be developed to meet the requirements of consumers in the trading area of the HPCL retail outlet. The approximate investments required for the development of infrastructure and facilities at New HPCL retail outlets will be indicated in the advertisement.

Bidding amount

In case of dealer-owned or company leased sites, a non-refundable fixed fee of Rs. 5 lakhs for Rural HPCL retail outlet and Rs. 15 lakhs for Regular HPCL retail outlet will be payable.

Documents Required

For educational qualification from overseas universities, or boards, an equivalent certificate issued by the competent authority or State Government or Central Government

Redemption value – Valuation certificates along with a copy of NSC

Valuation certificates along with a copy of the demat statement

Registered societies or companies should have made a net profit for the previous three consecutive financial years duly certified by a Chartered Accountant

Copy of Passbook, account statement, deposit receipts

Valuation certificates and a copy of mutual fund certificates or demat statements

Documents Required for Ownership Proof

The applicant should submit at least any one of the following materials in support of ownership of land offered for the HPCL Dealership:

Khasra or Khatauni or any other equivalent revenue document or certificate from revenue officers confirming the status of the purchase of the property

Registered lease deed for a minimum period (as per advertisement)

Registered gift deed or registered sale deed

Any other type of ownership or transfer deed document such as Mutation record

Lease agreement letter issued by the Government or Semi Government bodies

HPCL Retail Outlet Dealership Selection Procedure

HPCL Retail Outlet (Petrol Pump) dealership selection will be made by inviting applications through advertisements under appropriate category in two newspapers (English and one Hindi / vernacular). Preference will be made through a draw of lots or bidding process depending upon the type of HPCL retail outlet site. Details will also be mentioned against each location in the advertisement.

Applicant Registration

To apply the applicant need to register in the portal. By clicking on the Applicant registration option, the link will redirect to the registration page. Provide all required details and click on submit.

Image 4 HPCL Retail Outlet Dealership

Provide Details in Application

After registration applicant can apply for HPCL retail outlet. Select state and district from the drop-down menu. Once selected the application form will be displayed, enter all details and upload documents (refer above). Click on submit; the application number will be displayed. Keep it safe for future reference.

Image 5 HPCL Retail Outlet Dealership

Print Application

The applicant can take print of the application by providing application number, email ID and password.

Image 6 HPCL Retail Outlet Dealership

Get Letter of Intent

After the verification of details, the HP Corporation will issue a letter of intent to the selected dealers.

Categories of Applicant

After receiving the application, the applicants will be classified into two groups as mentioned below based on the land offered by them

Group 1: Applicants are having a suitable piece of land in the advertised location or area either by way of ownership or long-term lease for minimum years (as advertised by HPCL).

Group 2: Applicants are having a firm offer for a suitable piece of land for purchase or long-term lease for minimum years (as advertised by HPCL).

Basic facilities required for Operation of HPCL Retail Outlet

The following facilities are expected to be provided at the HPCL retail outlet.

S.No

Type of Facility

“A” / “CC” site including CFS locations

B”/ “DC” Site / Company Leased site

Provision of Facility by

Infrastructural Facilities

1

Developed land with boundary and compound wall as per corporation specification

Firefighting & Safety Equipment

The dealer will provide with firefighting and safety equipment at HPCL retail outlet as per the statutory requirements. Trained staff will be available to handle and operate the same.

Licence Fee Payable

In case of a corporation owned “A” / “CC” site HPCL ROs dealerships, a Licence Fee payable on per kilo letter basis will be recovered from the dealer. At present is Rs. 48 per kilo letter for Petrol (MS) and Rs. 41 per kilo letter for Diesel (HSD)

For Dealer owned “B” / “DC” site HPCL retail outlets, this licence fee will be around Rs. 18 per KL for petrol (MS) and Rs. 16 per KL for diesel (HSD)

In some instances, the land and superstructure (constructed by the HPCL dealer), will be taken on lease from the selected candidate. The HPCL will pay the rentals as mutually agreed and the same amount will be recovered from the dealership an additional licence fee. In such cases, the licence fee as applicable will be recovered at the lower rate which at present is Rs. 18 per KL for MS and Rs. 16 per KL for HSD.

Dealer Commission Rate

Hindustan Petroleum Corporation Limited (HPCL) awards Rs 2.58 commission to dealers on every litre of petrol they sell, whereas the corporation pays Rs 1.65 as dealer commission on per litre of diesel.

HPCL Retail Outlet Management

A person selected for the HPCL retail outlet dealership will be paying attention towards day to day work by personally managing the affairs of the dealership.

HPCL dealer will not allow for taking up any employment.

If the selected candidate is already employed, she or he will have to resign from the employment and produce the letter of acceptance of the resignation by the employer before the issuance of a letter of appointment by the HPCL.

Further at the time of issuance of the letter of appointment, the LOI holder will have to give a notarised affidavit stating that he is not employed in Private Sector or is not drawing any salary.

An entity selected for the dealership will have to manage the day to day working or affairs of the dealership under the supervision of their employees and in line with the provisions of the dealership agreement.

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